Russia Diversifies Grain Exports Amid Southern Route Disruptions

Russia's grain export routes are undergoing significant changes in response to disruptions in its traditional southern routes. The country is making greater use of the Baltic and Caspian basins, which have seen a surge in grain handling volumes.

In the first ten days of September, the largest volumes among alternative ports were handled by Ust-Luga and Vysotsk on the Baltic side, while Astrakhan and Makhachkala dominated the Caspian route. Astrakhan shipped 87.5 thousand tons of grain to Iran, with Makhachkala following at 14.2 thousand tons.

The Baltic route had already been increasing grain handling before the disruptions in southern ports. In the first half of this year, Russian Baltic ports handled about 1.2 million tons of grain, compared to 865 thousand tons a year earlier. Vysotsk increased throughput to 694 thousand tons, while Ust-Luga processed around 260 thousand tons.

The potential for additional grain shipments from the Middle and Upper Volga regions via Vysotsk is estimated at up to 500 thousand tons per year following the completion of reconstruction at the Gorodets hydropower facility. However, one key constraint on the Baltic route is the lack of road access to the Vysotsk and Ust-Luga terminals.

The Caspian route is expanding even faster, with ports in Astrakhan and Olya increasing total cargo turnover by 79% year-on-year to 4.2 million tons. Around 1.9 million tons was grain, up from 732.8 thousand tons in the first quarter.